BP – surviving in a USD50 oil barrel world

Addressing the plummet in oil prices in recent months at the BBG monthly meeting, BP’s Chief Procurement Officer Wilbert Long said there is no one single projection that people are aligning to about the future.“Are we in a v-cycle or a u-cycle? I can even ask if we are in an up-and-down cycle. People are divided on this,” he addressed attendees at the Hyatt hotel, 27 April 2015.

“We’re fortunate that we had a four years of USD100 dollar oil, and I think we became complacent. We and this country were living very well. Now, with the drop, the people, the country and us as a company are feeling it. We have to change ourselves and say, if we’re a leading company what should we be doing?

“We need to position ourselves to be able to thrive and survive in a USD50-barrel world now, re-baseline the organisation, and do whatever it takes to get us there, and maintain the discipline. So, if oil does go back to USD100, we shouldn’t change, we should maintain the discipline.”

He compared this strategy to Axon, pointing out that despite the decline, the company isn’t making an awful lot of changes in the way they operate day to day. “That’s something that that we are going to have to do and are doing right now,” explained Wilbert.

BP has worked with 1600 British companies in this region (Azerbaijan, Georgina, Turkey) during last 10 years. “British companies have been very, very instrumental in what has transpired in the region. You’re extremely important to us, and certainly you will continue to be important to us in the foreseeable future.”

British Embassy Update

New Deputy Ambassador Stephen McCormack addressed the BBG for the second time since arriving at post, and gave a brief rundown on the activities and events that the British Embassy is organising over the coming month:

13 May: Crisis training exercise in preparation for Baku 2015

31 May: Visit by the Lord Mayor of London Alderman Alan Yarrow to promote UK financial services.

2 June: Caspian Oil and Gas Show (COGS) reception

10 June: Queen’s Birthday Party (QBP)

COGS and the QBP are the British Embassy’s annual flagship events. Sponsorshop is still available so if you would like to have your name associated with the British Embassy please contact Head of the Commercial Section Jacqui Mullen Jacqui.Mullen2@fco.gov.uk

If you would like to attend a meeting or wish to become a sponsor, please contact Chairman John Patterson, jpatterson@i2offshore.net